DE40: Sell-offs in Europe; automotive and aviation surprise positively 💡

• DE40 erases early gains

• Automotive and aviation are the mainstay of gains in Europe

Overall market situation: European markets are mixed during Thursday's stock market session. Germany's DAX adds nearly 0.3% (the DE40 contract loses). Sell-offs are seen in the French, Spanish and Swiss markets. Ukraine's negotiations with the U.S. and European countries to conclude aid deals for the struggling country are the main topic of the day. The latest information on customs changes, as well as the ECB's decision on interest rates, are also an important element.

In the broader European market, we are seeing share prices of companies representing the main sectors of the economy fall. Source: xStation

The German DE40 index is losing 0.28% today intraday. The most important support for the index remains the 50-day EMA (blue line on the chart) and the support area of ​​the consolidation zone close to 21,230 points. Technically, the DE40 is still on a steady upward trend. Source: xStation

Corporate news:

The mood in the European market is mixed. Most of the largest companies are losing value, but there are also exceptions. Representatives of the automotive sector are gaining value after the White House announced that a one-month exemption from the changed customs tariffs (a free trade agreement between the United States, Mexico and Canada; manufacturers with factories in these countries) will be introduced.

Source: xStation

Moreover, Volkswagen (VOW1.DE) on Wednesday presented the compact concept car ID. EVERY1, which will cost around 20,000 euros and is intended to drive the development of the German brand on the international market. The first VW model using electric architecture, developed together with Rivian Automotive Inc., is to start production in two years at an unspecified location in Europe.

Lufthansa (LHA.DE) shares are also doing very well, adding 7.7% during today's session. The company is forecasting growth after a challenging year. Adjusted operating profit (EBIT) in 2024 was EUR 1.65 billion, -39% y/y, compared to an estimate of EUR 1.59 billion. Similar sentiments are prevalent in Air France-KLM (AF.FR) shares. The company's EBITDA was EUR 1.00 billion in Q4 (EUR 843.6 million expected).

Other news from individual DAX companies. Source: Bloomberg Financial LP